Fed: No plans to change benefits for families: Costello

AAP General News (Australia)
04-04-2006
Fed: No plans to change benefits for families: Costello

CANBERRA, April 4 AAP - The family tax benefit and the healthcare card will not be
tightened in this year's federal budget, Treasurer Peter Costello says.

The healthcare card - which offers concessions on medicines and other health-related
costs - is available to those receiving government payments, including families who receive
the maximum amount of family tax benefit.

Recent speculation had suggested the government may move to tighten eligibility for
the card because of spiralling costs.

But Mr Costello said he had no plans to do so.

"I'm not proposing any changes to healthcare cards," Mr Costello said.

"I don't think it's a fruitful area of speculation."

The treasurer said the family tax benefit was another area of assistance that would
be spared any changes in the budget.

"The family tax benefit is of enormous assistance for Australian families," Mr Costello said.

"What it means is that Australian families with children - even on average wages -
pay no tax, no net tax.

"It puts Australian families in a much better position than comparable families in
other developed economies.

"We've done that as a deliberate matter of policy because we think it's hard raising
kids these days, so we're not proposing to take away any benefits from them, I can assure
you of that."

Mr Costello also defended the 30 per cent child care rebate, amid suggestions it favoured
high-income earners.

He said the capping of the rebate at $4,000 per year meant it could not be used to
cover expensive child care bills for the rich.

"It is of more financial value for people who are in that 30 per cent tax range ...

which covers all of the middle income earners."

AAP jcol/so/jas/nf

KEYWORD: BUDGET COSTELLO

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